The Hidden Costs of Flood Damage: Why Flood Insurance Is Worth It

Heavy precipitation, rapid snowmelt and many other circumstances can quickly lead to floods and the threat of significant property damage. In fact, floods are among the most common and damaging natural disasters, often affecting thousands of U.S. homeowners every year. But still, many property owners may not be fully aware of the importance of flood insurance. At Dean Olson Insurance Agency, we aim to help you understand why this type of coverage may be critical in limiting the financial repercussions of floods.

What Is Flood Insurance?

As a homeowner, you should first be aware that if you have a standard home insurance policy, it likely explicitly excludes floods as a covered peril. This means that as floodwaters recede and leave behind potential ruin, you’d be left facing repair, restoration and replacement costs on your lonesome. Fortunately, flood insurance policies can be purchased from the Federal Emergency Management Agency (FEMA) via its National Flood Insurance Program and may also be available from private insurers.

Why Is Coverage Needed?

The potential consequences of not having suitable flood insurance cannot be overstated. Consider the rebuild cost of your home should it be a total loss, which is fully possible following severe flooding. Then, add the value of cherished and essential belongings in your home, such as family heirlooms, jewelry, fine art, furniture and electronics. Furthermore, receding floodwaters could leave behind contaminated and dangerous debris, potentially incurring significant removal expenses.

Given the potentially monumental cost of these losses, having to pay out of pocket could be impossible. Even if you are positioned to handle such a situation, having to do so would likely have far-reaching monetary ramifications for you and your family. Fortunately, by securing suitable flood insurance, your premiums can foster robust financial security and peace of mind.

We’re Here to Help

Contact Dean Olson Insurance Agency today to learn more about flood insurance or compare personalized quotes for optimal coverage.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.